Industry Analysis & Industry Trends
Revenue for the Hardware, Plumbing & Heating Equipment Wholesaling industry declined significantly in most of the five years through 2011-12. The only revenue growth occurred in 2006-07, although slight growth of 0.1% is forecast for 2011-12 to reach £7.3 billion. Overall, industry revenue declined at an average rate of 12.4% per annum. Profit experienced similar trends, with large declines followed by only slight improvements towards the end of the period.
The major issue currently facing the industry is wholesale bypass, whereby manufacturers supply products directly to retailers, leaving wholesalers out of the supply chain. By supplying directly to retailers, manufacturers can get their products to the final consumer far quicker and cheaper... purchase to read more
Industry Report - Starting a New Business Chapter
Branding can be a hurdle to any prospective industry entrant. Consumers and contractors tend to be brand loyal or are more likely to purchase a well-known brand than a generic one. During the recession, many Britons looked for bargains and demand for generic brands rose slightly. However, branding continues to present a barrier to entry for new players. They will need to sign contracts with manufacturers of popular brands to gain a foothold in the market. In fact, obtaining distribution agreements is also an entry barrier as it may not be easy, especially from suppliers with a good brand name.
Vertical integration, that is the integration of the supply chain, is also an issue for anyone wishing to enter this industry... purchase to read more